MRC | Merchant Risk Council’s Post

🚀 Sharing an insightful read from the Spec Team on revolutionizing fraud prevention: "Journey Data: A New Paradigm in Fraud Fighting." Discover how advanced data strategies are transforming the way we combat fraud. Check out the full blog post here: Journey Data: A New Paradigm in Fraud Fighting #FraudPrevention #DataSecurity #Innovation #SpecProtected

Is your business's fraud prevention driving customers away? Balancing customer experience with fraud prevention can be tricky. It’s important to protect your business from fraud, but too much friction can drive customers away. When you focus on security, it often hurts the user experience. Long forms, multiple verification steps, and strict checks can scare off potential customers. But on the flip side, being too lax can lead to fraud, which can cost your business big time. Here’s how you can find the Sweet Spot 👇 ✔️ Streamlined Authentication Multi-factor authentication (MFA) is great for security, but it doesn't need to be used for every login. Save it for high-value transactions or when something seems off. ✔️ Transparent Communication Let your customers know about the security measures in place. Being open about it builds trust and makes customers more willing to follow security steps. ✔️ Behavioral Analytics Use these to spot unusual activities. By understanding how users typically interact with your site, you can flag anything strange without bothering your regular customers. Here are some Best Practices for fraud prevention in online forms: ☑️ Keep It Short Only ask for the essential info. Long forms can frustrate users and increase the chances they’ll leave. ☑️ Break It Down Split forms into smaller steps. This keeps users engaged and makes the process feel less overwhelming. ☑️ Selective Security Use CAPTCHAs and bot detection tools only where they’re needed. This keeps the rest of the experience smooth for real users. Balancing customer experience with fraud prevention isn’t about choosing one over the other. It’s about using smart strategies to protect your business while keeping your customers happy. With the right approach, you can have both security and a seamless user experience. It’s not about choosing between security and user experience but harmonizing the two for optimal business growth. By following these practices, you'll not only protect your business but also build trust and satisfaction among your customers, leading to long-term success. Want to learn more about these strategies? Let’s chat! #PaymentProcessing #PaymentSolutions #FraudProtection #CustomerExperience

Beyond the Basics of #frauddetection : 3 Untapped #strategies for Merchants to Protect Revenue. The battle against fraud is an ongoing saga for merchants, a relentless game of cat and mouse with ever-evolving tactics on both sides. While traditional fraud detection systems remain essential, relying solely on them is not enough in today's sophisticated landscape. To truly shield your revenue, it's time to venture beyond the basics and embrace untapped strategies. 1. Customer Behavior Analytics: Shift your focus from transactions to the individuals behind them. Employ AI-powered tools to analyze customer behavior patterns, identifying anomalies that might signify fraudulent activity. Unusual purchase times, sudden spikes in spending, or inconsistent shipping addresses can all be red flags, even if the individual transaction appears legitimate. By understanding your customers' typical behavior, you can proactively detect deviations that signal potential threats. 2. Collaborative Intelligence: Don't go it alone! Partner with other merchants, payment processors, and fraud prevention networks to share intelligence and insights. This collaborative approach creates a wider net, allowing you to learn from the experiences of others and stay ahead of emerging fraud trends. By pooling resources and expertise, you can collectively strengthen your defenses and make it significantly harder for fraudsters to operate. 3. Frictionless Authentication: Security doesn't have to equate to cumbersome steps. Implement seamless authentication methods that integrate effortlessly into the customer experience. Think biometric verification, geo-location validation, or one-time passwords sent through secure channels. These methods offer robust security without causing friction for legitimate customers, ensuring a smooth and trust-building process. Remember, the key to success lies in: Proactive detection: Move beyond simply reacting to fraud; actively seek out potential threats before they materialize. Data-driven insights: Leverage customer behavior and network intelligence to identify vulnerabilities and tailor your defenses accordingly. Frictionless security: Implement robust measures that protect your revenue without sacrificing the customer experience. By adopting these untapped strategies, you can move beyond the basics of fraud detection and build a multi-layered defense that safeguards your revenue and fosters trust with your customers. In the ever-evolving world of fraud, proactive innovation is the key to staying ahead of the curve and securing your financial future. Let's discuss it! What do you think about these strategies? Do you have any other untapped methods for merchants to protect their revenue from fraud? Please share your insights in the comments below and let's build a comprehensive shield against the dark forces of fraudulent activity!

🔥 LAST CHANCE!! 🚀Winning The Battle Against Marketplace Account Fraud: DAT's Success Story B2B and B2C marketplaces are under attack from different types of account fraud, including Account Takeover (ATO), account opening fraud, and many variations of fraudulent account scams, impersonations, transactions and collusions. 🔑Join this virtual event to learn: - How real-time fraud prevention saved 25,000 labor hrs in the first 90 days - Implementation of the Verosint solution in just 1.5 days - Nearly immediate reduction in reported fraud across all channels by 65% - Very high fraud detection accuracy with virtually zero false positives - Streamlined case investigations with AI-driven behavioral analytics - How real-time fraud detection created positive ripple effects of efficiency and collaboration across the business Speakers - Stephen Shoaff, CEO and Co-founder, Verosint - Calvin Locklear, Enterprise Solutions Product Manager, DAT Freight & Analytics 🗓️Date: February 28th ⏰Time: 10 a.m. PT / 1 p.m. ET 👉🏻Register now: https://lnkd.in/eaPNpY9k

🚀 Winning The Battle Against Marketplace Account Fraud: DAT's Success Story B2B and B2C marketplaces are under attack from different types of account fraud, including Account Takeover (ATO), account opening fraud, and many variations of fraudulent account scams, impersonations, transactions and collusions. 🔑Join this virtual event to learn: - How real-time fraud prevention saved 25,000 labor hrs in the first 90 days - Implementation of the Verosint solution in just 1.5 days - Nearly immediate reduction in reported fraud across all channels by 65% - Very high fraud detection accuracy with virtually zero false positives - Streamlined case investigations with AI-driven behavioral analytics - How real-time fraud detection created positive ripple effects of efficiency and collaboration across the business Speakers: - Calvin Locklear, Enterprise Solutions Product Manager, DAT Freight & Analytics - Stephen Shoaff, CEO and Co-founder, Verosint 🗓️ Date: February 28th ⏰ Time: 10 a.m. PT / 1 p.m. ET 👉🏻 Register now: https://lnkd.in/eaPNpY9k

🚀🔥 Completely agree with Socure's Chief Product & Analytics Officer Pablo Y. Abreu... Our release this week of the Sigma V4 Fraud Engine is GAME CHANGING for public sector institutions & companies losing millions of dollars annually from digital account opening fraud. If you are a #government leader, you MUST SEE these stats below... Here’s the performance data on Sigma Identity V4: 🔹 Capturing up to 99% of identity fraud in the riskiest 5% of users, compared to just 37% by competitors at the same review rate 🔹 Reducing false positives by more than 40% over Socure's Sigma ID v3 🔹 Delivering an average 20x ROI for customer's from increased revenue/false positive reduction, fraud loss reduction, and lower manual reviews How did we do it? 10 years of making huge investments across 3 key areas: 1️⃣ Digital Signal creates a robust digital fingerprint of each customer, inclusive of devices and their OS, browser languages, geolocations, and relationship to multiple identities. 2️⃣ Entity Profiler allows us to see an identity from its inception in the digital economy, assessing every historical transactional, digital and relational data point to make up-to-the-second risk decisions. 3️⃣ Integrated Anomaly Detection is a new model that assesses identity behavioral pattern differences at the company, industry, and financial network level and allows us to identify thousands of risk-indicating variables. Pablo had a great analogy... Think of fighting #identityfraud like playing a giant game of 'Spot the Difference' where most of the images are identical copies of a normal, everyday scene. The fraudulent activity is like one subtle, but crucial difference hidden in one of these images. It's hard to find because it blends in so well. However, with the right tools, this one different detail lights up or gets highlighted, making it easy to spot. This saves the fraud analysts, who are like players in this game, a lot of time and effort as they don't have to scrutinize every single part of the picture to find the anomaly. Learn More Here: https://lnkd.in/e9Q6DbWa Jennifer Kerber | Jeff Shultz | Robert Shea | Adam Hughes | Jeremy Grant | Frank Snyder | Mike Halas | Chul Yim | Neal Gallucci | Johnny Ayers | Rivka Gewirtz Little | Brittany Geronimo | Chris Hill | Teneka Polite | Brett Johnson | Casimiro (Casey) Lovato-Winston PMP | Matthew Francis | Yan Moyaux | Aaron Barfoot | Matthew Thompson | Jordan Burris #fraud #ai #publicsector

DataVisor, a leading AI-driven fraud prevention platform, introduces AI Co-Pilot #AI #AIcopilot #AIdrivenfraudprevention #artificialintelligence #Cybersecurity #DataVisor #falsepositives #financialfraud #Frauddetection #instantpaymentsystems #llm #machinelearning #Precision #realtimeprotection #speed #userexperience

🔒 Mastering Subscription Fraud: 7 Proven Strategies 🔍 Subscription fraud is evolving, and so should our defense strategies. 💪 Here are seven best practices to stay ahead of the game: 1️⃣ Data Aggregation: Start by harnessing the power of data. Combine internal and external sources, like device info, geolocation, and email reputation, for a coordinated approach. 2️⃣ Front-End Authentication: Make sure you're dealing with legitimate individuals from the get-go. Employ intelligent ID proofing and authentication methods to validate new service subscriptions. 3️⃣ Fuzzy Matching: Put your fraud team in control. Let them manage strategies that focus on shared personal data and subscription metadata to spot suspicious patterns. 4️⃣ Advanced Predictive Models: Stay ahead of fraudsters with segmented detection models. Tailor your approach by product, channel, and fraud type (identity theft, synthetics, and more). 5️⃣ Network Analytics Correlation: Think of trust like dating. Resolve identities with linking algorithms and visualize data to uncover insights. Proactive link analysis helps spot fraud rings. 6️⃣ Smarter Investigations: Investigate efficiently by comparing records side by side. Highlight matches, flag fraud elements, and visualize connections across multiple degrees of separation. 7️⃣ Constant Experimentation: The fraud landscape is ever-changing. Test and simulate new strategies to adapt. Maintain control over high-volume decisions and apply unique fraud policies. Stay vigilant, adapt, and keep subscription fraud at bay! 💼💡 #SubscriptionFraud #FraudPrevention #FICO

One thing we hear from clients and peers often. The biggest threat is no longer credit card fraud, it’s the ocean of scams. Credit card fraud hasn’t vanished, but as an industry we’re getting a handle on it. So the fraudsters have shifted to scams to exploit the weaknesses in controls. This could be anything from ad-click fraud, affiliate scams, phishing and social engineering. Most merchants (and their fraud vendors) are not setup to manage this risk across the spectrum As an industry we need to become much more data-driven to improve the quality of controls, reduce false positives, and increase our true detection rates. As a data-led company we want as many signals as possible to detect threats. This means 👉 Spending time identifying the highest quality data signals, rules and ML models 👉 Ongoing and real-time effectiveness testing displayed in a dashboard 👉 Periodic back testing, A/B testing and effectiveness reviews The most effective commerce, payment conversion and risk management teams will be data-led, and being data-led is about getting the basics right. The fancy AI stuff like using Generative AI comes once that’s in place. If the whole industry got 10% better at being data-led that would have a massive impact on fraud and BSA/AML risk globally.

Earlier this week I was sent this great report from Markets and Markets by my all knowing colleauge Robin King. The article was shedding light on the dynamic landscape of the Fraud Detection & Prevention market. According to their analysis, the market is expected to witness substantial growth in the coming years, driven by the escalating concerns regarding financial fraud across various industries. Key highlights from the report include: Market Size & Growth: The global Fraud Detection & Prevention market is projected to grow at a robust CAGR, fueled by advancements in technology and the increasing adoption of digital payment systems. Technological Advancements: Innovative solutions leveraging AI, machine learning, and big data analytics are revolutionizing fraud detection strategies, enabling businesses to stay ahead of sophisticated fraudsters. Security Concerns: With the rising instances of cyberattacks and data breaches, organizations are prioritizing investments in fraud prevention technologies to safeguard their assets and maintain trust among stakeholders. As professionals in the industry, it's crucial for us to stay informed about these market trends and developments. Whether you're a fintech enthusiast, cybersecurity expert, or a business leader navigating through the digital age, understanding the dynamics of fraud detection and prevention is paramount. I highly recommend diving into the detailed insights provided in the article to gain a comprehensive understanding of the evolving landscape and the opportunities it presents. Let's continue to stay vigilant, innovate, and collaborate towards building a safer and more secure digital ecosystem. https://lnkd.in/e4FKai7d